Expert Advisors

Expert Advisers (EA), also called trading robots, are the tools used by Forex traders. Obviously, to provide a successful trading, not only needs a trader to have a wealth of knowledge about the fundamental and technical analysis, but also to have honed trading skills. You need to understand the trading strategy, to analyze the data quickly, to stay calm in front of the emergency situations, as well as to make the right decisions. Beginners have to spend a lot of time learning, but the development of the technology allows them to get started quickly.

It becomes possible with the Expert Advisors, programs that can perform some trading tasks in the automatic mode, to simplify the analysis of indicators, or to completely control the entire trading cycle as well.

Experienced traders also use the advisors, since they relieve the user from sitting at the computer regularly, tracking the price fluctuations. There are no traders who can trade around the clock, with no days off, is not exposed to stress, and focus on the digital data only.

Advantages and Disadvantages of the EA

The benefits of this software type include the following features:

• Advisors are not a subject to the human factor;
• The data analysis is made quickly. Entry points to the market, exit points, stop-losses, and take-profits are set automatically, based on the accurate calculations;
• Possibility to trade around the clock.

On the other hand, the use of the advisors also has the significant drawbacks:

• Impossibility to change the built-in strategy;
• Lack of the fundamental analysis;
• High risk. The robot can be mistaken, getting confused with the indications, for example, after the significant economic news release, and because of the algorithm drawbacks as well;
• Low profitability. Most advisers make deals only in the most favorable market conditions. As a result, the robot trades rarely, and so brings a small profit. Otherwise, the advisor can cause significant drawdowns.

Despite all the shortcomings of the advisers, some of them show a profit of up to 100% of the deposit amount, per month. The EA are fundamentally different in their algorithms, settings, and strategies used, so the profitability of such tools depends exactly on the developer.

Types of the Expert Advisors

Forex-robots are divided into three categories, depending on the work autonomy:

• Automatic robots do analyze the indicators, establish the entry and exit points, control the entire work flow independently, excluding the trader's participation;
• Semi-automatic advisors give a trader tips on the best points for the transaction. The user takes the decision himself.
• Scripts. These are not autonomous robots, but the program code blocks, that connect to the trading platform, to provide the simultaneous implementation of several similar trader's actions.

How to choose an Expert Advisor

If you are searching for the EA, you need to choose the functions you want to assign him to, based on the strategy used, as well as the other users' feedbacks. If the analysis and trade parameters of the EA can be adjusted, you should give particular attention to that, based on the strategy, time frame, and the currency pairs traded.

You will be able to assess the effectiveness of each particular robot only after a few months. Therefore, we strongly recommend you to test the Expert Advisor on the demo account first, before you join the real trade.